Home Selling Costs – The Quick & Dirty
If you’re looking to sell your New Braunfels home, you should first be prepared to spend some dollars. Many homeowners aren’t aware of this simple fact – in almost all real estate transactions it actually costs the seller money – but the question is, how much money? In this day and age of the internet it can be overwhelming just how much information exists, so, your New Braunfels all-cash home buyers The Best Cash Home Buyer wanted to spread truth, backed by real life experience and with actual numbers. When selling, it’s important to understand the estimated value of your home which directly affects how much in fees you can anticipate. Use this home selling guide to help uncover the most profitable ways to prepare your home for sale and to maximize your profit.
Learn More: New Braunfels cash home buyers The Best Cash Home Buyer would be more than happy to provide you with a free comps report. The Best Cash Home Buyer can also provide multiple options for selling your home, in many instances we can pay more than market value.
What it Costs to Sell a House in New Braunfels
Nearly $30,000 – about the same as buying a brand new Chevy Malibu – that is the average cost to sell a home in the San Antonio MSA, according to a Q3 2019 market report by the Texas Realtors Association. But what’s included in those home selling costs?
Real Estate Agent Commissions. 6%
When selling a home on the MLS both you and the buyer will likely each have realtors. When the home sells, it’s the buyer who pays the realtor commission, both your realtor’s and the buyer’s realtor. Not all realtors charge the same amount for their services, however, the typical commission is 6%, 3% to the buyer’s agent and 3% to the seller’s agent. To demonstrate the significance of this fee, the median home sale price in San Antonio was $235,000 during Q3 2019 meaning a typical seller will have to pony up $14,100 in realtor fees alone.
The Best Cash Home Buyer Pro-Tip: Reduce realtor fees by partnering with a low-commission or flat fee agent.
You can also try to negotiate who pays the realtor commission. We never advise trying to negotiate a
reduction in realtor commissions. Doing so simply screams that you do not value them, and thus they will not value you. The bottom line is don’t do it unless you’re “ok” with your realtor doing a substandard job with the marketing of your property and negotiating on your behalf.
Learn More: San Antonio and New Braunfels real estate investors buy houses without realtors so you can save thousands.
Home Repairs. 1-2%
Maintenance and repair issues are one of the top reasons why pending home sales fall through, often literally at the closing table. From this, it’s easily inferred that if you’re selling the traditional way, ensuring
your home is in good condition before listing can prevent you from having to make major concessions. Moreover, glazing over any critical repairs are sure to be “discovered” during the bank required home inspection so it’s best to correct any potential deficiencies up front. Doing so will ensure you’re able to list your home at its
full market value.
As you’re preparing to sell your home in New Braunfels, we recommend getting a pre-inspection assessment to help pinpoint what may need to be fixed. You’ll then have a list of items that you can prioritize into repairs you’ll make and repairs you will not make. It’s common for seller concessions to be 1-2% of the sale price. If your San Antonio home sells at the median value of $235,000, expect to concede $3,525.
The Best Cash Home Buyer Pro-Tip: Regardless of what repairs you make, get contractor bids for all items.
Having this serves two purposes, (1) if the buyer’s bank appraiser values the house lower than expected,
you’ll have a list of items you repaired and how much those items cost. In theory, this should add value to
your home. (2) If the buyer is seeking concessions you’ll have actual quotes for how much the repairs will
cost, ensuring you don’t concede more than you should.
Learn More: When you sell your home for cash in New Braunfels, we’ll purchase it regardless of a home’s
condition. Because of our investment strategy, The Best Cash Home Buyer often times can pay more than traditional buyers.
Home Improvements. 1% but Variable
Making home repairs are an inevitable part of any home sold through traditional means. Although not inevitable, home improvements are still quite common and it’s important that they be considered. The questions here are what you might spend in both time and money, and perhaps most important, the likely return on investment.
If time is of the essence and/or you’re a little short of funds, focus on making smaller renovations which
add value. Instead of a major kitchen overhaul, for instance, you could invest a weekend painting cabinets, updating their hardware, and installing a new backsplash. You could likewise install new bathroom vanity’s and our favorite, which we highly recommend, installing new toilets – everyone wants their own throne, you know. These are simple updates that add value, don’t cost much, and don’t take much time, effort, or expertise.
The Best Cash Home Buyer Pro-Tip: When deciding upon home improvements follow these home improvement recommendations.
Be sure to also come up with a budget and stick to it, a good number is 1% of what you think your home will sell for. If your San Antonio home sells at the median value of $235,000, expect to concede at least $2,350.
Learn More: Strapped for cash and can’t afford to make home improvements, follow these no cost
tricks to sell your home fast.
Staging Costs. 1-1.5%
When your home is on the market you want buyers to walk in and envision themselves living in your home. This is where staging comes in which involves arranging furniture and decor to make a home as visually appealing to buyers as possible. According to realtor.com the average cost for most stagers is $300 to $600 for an initial design consultation, and $500 to $600 per staged room. Assuming your home is a 3/2, you’re cost for staging services will range between $2,300 to $3,200.
Staging a home perhaps might initially seem like an unnecessary expense, or at minimum something you can simply do yourself. Do not underestimate the power of a professional stager – their services are paid for, for a reason. In a National Association of Realtors (NAR) survey, 29% of sellers’ agents reported offers increased between 1% and 5%. Twenty-one percent reported that staging increased the sellers’ home value by 6% to 10%.
The Best Cash Home Buyer Pro-Tip: A do-it-yourselfer or just can’t afford the expense, then be sure to remove as much
stuff as possible.
If you don’t, most buyers will walk into your home and think, “my stuff won’t fit”. Wow home buyers by
showing them how much space there is for stuff – not how much stuff there is in a space.
Learn More: We’ve purchased many homes throughout the greater New Braunfels area and needless to
say, a lot have been ugly ducklings. However, we’ve still paid top dollar because we have the necessary
experience which allows us to see a home’s full potential, staged or un-staged. Our local New Braunfels cash
home buyers can save you thousands over a traditional buyer.
Taxes. 0-15%
It is absolutely in your best interest to educate yourself on what the IRS calls “capital gains”, which is a
tax on the profit realized on the sale of real estate. Luckily, most homeowners won’t be subject to capital
gains taxes when selling their home in New Braunfels; provided they meet the general qualifications. When selling your home, can you answer “yes” to – has this house been your primary residence (homestead) for at least 2 out of the last 5 years? If you indeed answered “yes”, then you qualify for the standard exception which exempts sellers from having to pay any capital gains tax on profits under $250,000 if your single or
$500,000 if you’re married and file your taxes jointly.
If you answered “no” to the above question, you must pay tax on any profit at the capital gains rate of
up to 15 percent.
Learn More: The tax laws for selling real estate.
Moving costs. 0.9%
There’s really no set standard for when you need to move from the home you’re selling. New Braunfels cash home buyers like The Best Cash Home Buyer will often times have no problem with you remaining in the home after closing. But when moving day comes there’s three factors to consider for determining how much moving will (may) cost you:
- Whether you’re moving a short or long distance
- The number of household items you’re moving
- Whether you’re moving yourself or hiring professional movers
Hiring professional movers certainly has its advantages. A full-service mover can handle packing your
belongings, moving them to your new home, and even unpacking them. You may pay a flat rate or an hourly fee, really, it doesn’t matter how you pay but we strongly suggest reading reviews of potential companies before hiring them. As all-cash home buyers in New Braunfels who have previously paid for our seller’s professional service moving costs, we know what to expect in terms of cost and who to and whom not to hire. For cost, expect it to range from $1,500 to $2,500. For professional movers, we highly recommend, “Get a Move on Movers” and we discourage using “3 Men Movers”. We had just one terrible experience with the so-called 3-Men; however one was enough.
The Best Cash Home Buyer Pro-Tip: In some instances, real estate investors in New Braunfels like The Best Cash Home Buyer can
pay for a seller’s professional moving services.
Closing Costs. 2%
Before finalizing the sale of your home you’ll be presented with a HUD-1. This is an itemized statement that breaks down all the costs and proceeds of the sale. While the buyer and seller both pay closing costs, sellers pay closing costs between 1% and 3% on average. These costs are for assessments like property taxes, attorney fees, notary and recording fees, wire transfer fees, and any costs associated with paying off your existing mortgage. If your San Antonio home sells at the median value of $235,000, expect to pay out $4,700 in closing costs.
The Best Cash Home Buyer Pro-Tip: Companies that pay cash for houses will occasionally pay all closing costs.
New Braunfels real estate investors The Best Cash Home Buyer have never closed a single deal where they did NOT pay all closing costs. Sell your home for cash in New Braunfels to Phil and Will, and save nearly $5,000.
Costs to Sell a Home – The Bottom Line
In the table below, we break down the cost to sell a home in New Braunfels, using as we have throughout, the median sold value of $235,000. When you account for all the costs to sell a home in New Braunfels, the total is quite shocking. Considering the time you’ll save and how it easy it is to sell to experienced real estate investors, perhaps selling your home to an all-cash home buyer like The Best Cash Home Buyer is the way-to-go.
